SPXL: Replacing SPY With 3x Leverage Proven To Yield Positive Long-Term Results

Cain Lee8.18K FollowersFollow5ShareSavePlay(13min)Comments(3)SummaryDirexion Daily S&P 500 Bull 3X ETF offers amplified exposure to the S&P 500, delivering 3x daily returns but with heightened volatility and risk.SPXL has significantly outperformed SPY over the past decade, but its structure exposes investors to volatility decay and amplified losses during downturns.The fund's heavy technology weighting and daily leverage reset can accelerate gains in bull markets but can also exacerbate losses in bear markets.I believe SPXL suits long-term, risk-tolerant investors using a dollar-cost-average approach, especially during market pullbacks and with optimism on tech sector growth.Andrzej Rostek/iStock via Getty Images Overview Over the years of studying the markets, it is very common to see retail investors encouraged to make it simple by buying an index fund. By simply dollar-cost-averaging into something like the State Street S&P 500This article was written byCain Lee8.18K FollowersFollowFinancial analyst by day and a seasoned investor by passion, I've been involved in the world of investing for over 15 years and honed my skills in analyzing lucrative opportunities within the market.I specialize in uncovering high quality dividend stocks and other assets that offer potential for long term-growth that pack a serious punch for bill-paying potential. I use myself as an example that with a solid base of classic dividend growth stocks, sprinkling in some Business Development Companies, REITs, and Closed End Funds can be a highly efficient way to boost your investment income while still capturing a total return that follows traditional index funds. I created a hybrid system between growth and income and manage to still capture a total return that is on par with the S&P.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in SPXL over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.